diff --git a/CHANGES b/CHANGES
index 2e68b029..9d9c8651 100644
--- a/CHANGES
+++ b/CHANGES
@@ -1,5 +1,9 @@
 10 January 2009
 
+* If a window is created from the command line, tmux will now use the same
+  current working directory for the new process. A new default-path option to
+  sets the working directory for processes created from keys or interactively
+  from the prompt.
 * New mode to display a large clock. Entered with clock-mode command (bound to
   C-b t by default); two window options: clock-mode-colour and clock-mode-style
   (12 or 24). This will probably be used as the basis for window locking.
@@ -841,7 +845,7 @@
   (including mutt, emacs). No status bar yet and no key remapping or other
   customisation.
 
-$Id: CHANGES,v 1.188 2009-01-10 19:35:39 nicm Exp $
+$Id: CHANGES,v 1.189 2009-01-10 19:37:35 nicm Exp $
 
  LocalWords:  showw utf UTF fulvio ciriaco joshe OSC APC gettime abc DEF OA clr
  LocalWords:  rivo nurges lscm Erdely eol smysession mysession ek dstname RB
diff --git a/TODO b/TODO
index a7dde8c4..2d825c0a 100644
--- a/TODO
+++ b/TODO
@@ -59,6 +59,7 @@
   data). maybe too slow though?
 - use a better termcap internally instead of screen, perhaps xterm
 - tty.c is a bit ugly
+- document default-path
 - document xterm-keys
 - document server-info
 - document window options changes
diff --git a/client.c b/client.c
index 4ae5fc1a..4e012a1b 100644
--- a/client.c
+++ b/client.c
@@ -1,4 +1,4 @@
-/* $Id: client.c,v 1.35 2008-09-09 22:16:36 nicm Exp $ */
+/* $Id: client.c,v 1.36 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -99,6 +99,8 @@ retry:
 		data.sx = ws.ws_col;
 		data.sy = ws.ws_row;
 		*data.tty = '\0';
+		if (getcwd(data.cwd, sizeof data.cwd) == NULL)
+			*data.cwd = '\0';
 
 		if ((name = ttyname(STDIN_FILENO)) == NULL)
 			fatal("ttyname failed");
diff --git a/cmd-new-session.c b/cmd-new-session.c
index 32bb94b4..711e0776 100644
--- a/cmd-new-session.c
+++ b/cmd-new-session.c
@@ -1,4 +1,4 @@
-/* $Id: cmd-new-session.c,v 1.32 2008-12-10 20:25:41 nicm Exp $ */
+/* $Id: cmd-new-session.c,v 1.33 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -113,7 +113,7 @@ cmd_new_session_exec(struct cmd *self, struct cmd_ctx *ctx)
 	struct cmd_new_session_data	*data = self->data;
 	struct client			*c = ctx->cmdclient;
 	struct session			*s;
-	char				*cmd, *cause;
+	char				*cmd, *cwd, *cause;
 	u_int				 sx, sy;
 
 	if (ctx->curclient != NULL)
@@ -138,6 +138,10 @@ cmd_new_session_exec(struct cmd *self, struct cmd_ctx *ctx)
 	cmd = data->cmd;
 	if (cmd == NULL)
 		cmd = options_get_string(&global_options, "default-command");
+	if (c == NULL || c->cwd == NULL)
+		cwd = options_get_string(&global_options, "default-path");
+	else
+		cwd = c->cwd;
 
 	sx = 80;
 	sy = 25;
@@ -160,8 +164,8 @@ cmd_new_session_exec(struct cmd *self, struct cmd_ctx *ctx)
 	}
 
 
-	if ((s = session_create(data->newname, cmd, sx, sy)) == NULL)
-		fatalx("session_create failed");
+	if ((s = session_create(data->newname, cmd, cwd, sx, sy)) == NULL)
+	       	fatalx("session_create failed");
 	if (data->winname != NULL) {
 		xfree(s->curw->window->name);
 		s->curw->window->name = xstrdup(data->winname);
diff --git a/cmd-new-window.c b/cmd-new-window.c
index f730e3ac..2dad77e8 100644
--- a/cmd-new-window.c
+++ b/cmd-new-window.c
@@ -1,4 +1,4 @@
-/* $Id: cmd-new-window.c,v 1.26 2008-12-10 20:25:41 nicm Exp $ */
+/* $Id: cmd-new-window.c,v 1.27 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -115,7 +115,7 @@ cmd_new_window_exec(struct cmd *self, struct cmd_ctx *ctx)
 	struct cmd_new_window_data	*data = self->data;
 	struct session			*s;
 	struct winlink			*wl;
-	char				*cmd;
+	char				*cmd, *cwd;
 	int				 idx;
 
 	if (data == NULL)
@@ -137,8 +137,12 @@ cmd_new_window_exec(struct cmd *self, struct cmd_ctx *ctx)
 	cmd = data->cmd;
 	if (cmd == NULL)
 		cmd = options_get_string(&s->options, "default-command");
+	if (ctx->cmdclient == NULL || ctx->cmdclient->cwd == NULL)
+		cwd = options_get_string(&global_options, "default-path");
+	else
+		cwd = ctx->cmdclient->cwd;
 
-	wl = session_new(s, data->name, cmd, idx);
+	wl = session_new(s, data->name, cmd, cwd, idx);
 	if (wl == NULL) {
 		ctx->error(ctx, "command failed: %s", cmd);
 		return;
diff --git a/cmd-respawn-window.c b/cmd-respawn-window.c
index 37040715..20002c3e 100644
--- a/cmd-respawn-window.c
+++ b/cmd-respawn-window.c
@@ -1,4 +1,4 @@
-/* $Id: cmd-respawn-window.c,v 1.5 2008-09-10 19:15:04 nicm Exp $ */
+/* $Id: cmd-respawn-window.c,v 1.6 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2008 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -47,7 +47,9 @@ cmd_respawn_window_exec(struct cmd *self, struct cmd_ctx *ctx)
 	struct cmd_target_data	*data = self->data;
 	struct winlink		*wl;
 	struct session		*s;
-	const char		*env[] = { NULL /* TMUX= */, "TERM=screen", NULL };
+	const char		*env[] = { 
+		NULL /* TMUX= */, "TERM=screen", NULL 
+	};
 	char		 	 buf[256];
 	u_int			 i;
 
@@ -64,7 +66,7 @@ cmd_respawn_window_exec(struct cmd *self, struct cmd_ctx *ctx)
 	xsnprintf(buf, sizeof buf, "TMUX=%ld,%u", (long) getpid(), i);
 	env[0] = buf;
 
-	if (window_spawn(wl->window, data->arg, env) != 0) {
+	if (window_spawn(wl->window, data->arg, wl->window->cwd, env) != 0) {
 		ctx->error(ctx, "respawn failed: %s:%d", s->name, wl->idx);
 		return;
 	}
diff --git a/cmd-set-option.c b/cmd-set-option.c
index 5f8b32d7..55d1a7cf 100644
--- a/cmd-set-option.c
+++ b/cmd-set-option.c
@@ -1,4 +1,4 @@
-/* $Id: cmd-set-option.c,v 1.49 2009-01-10 01:51:21 nicm Exp $ */
+/* $Id: cmd-set-option.c,v 1.50 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -49,6 +49,7 @@ const struct set_option_entry set_option_table[NSETOPTION] = {
 	{ "bell-action", SET_OPTION_CHOICE, 0, 0, set_option_bell_action_list },
 	{ "buffer-limit", SET_OPTION_NUMBER, 1, INT_MAX, NULL },
 	{ "default-command", SET_OPTION_STRING, 0, 0, NULL },
+	{ "default-path", SET_OPTION_STRING, 0, 0, NULL },
 	{ "display-time", SET_OPTION_NUMBER, 1, INT_MAX, NULL },
 	{ "history-limit", SET_OPTION_NUMBER, 0, SHRT_MAX, NULL },
 	{ "message-bg", SET_OPTION_COLOUR, 0, 0, NULL },
diff --git a/server-msg.c b/server-msg.c
index 555e21ae..2f1fc681 100644
--- a/server-msg.c
+++ b/server-msg.c
@@ -1,4 +1,4 @@
-/* $Id: server-msg.c,v 1.54 2009-01-07 22:57:03 nicm Exp $ */
+/* $Id: server-msg.c,v 1.55 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -183,6 +183,10 @@ server_msg_fn_identify(struct hdr *hdr, struct client *c)
 	c->sx = data.sx;
 	c->sy = data.sy;
 
+	c->cwd = NULL;
+	if (*data.cwd != '\0')
+		c->cwd = xstrdup(data.cwd);
+
 	data.tty[(sizeof data.tty) - 1] = '\0';
 	tty_init(&c->tty, data.tty, xstrdup(term));
 	if (data.flags & IDENTIFY_UTF8)
diff --git a/server.c b/server.c
index f0651f07..078183b3 100644
--- a/server.c
+++ b/server.c
@@ -1,4 +1,4 @@
-/* $Id: server.c,v 1.92 2009-01-10 19:35:40 nicm Exp $ */
+/* $Id: server.c,v 1.93 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -101,7 +101,7 @@ server_start(const char *path)
 	 * Must daemonise before loading configuration as the PID changes so
 	 * $TMUX would be wrong for sessions created in the config file.
 	 */
-	if (daemon(1, 1) != 0)
+	if (daemon(0, 1) != 0)
 		fatal("daemon failed");
 
 	ARRAY_INIT(&windows);
@@ -590,6 +590,9 @@ server_lost_client(struct client *c)
 		xfree(ARRAY_ITEM(&c->prompt_hdata, i));
 	ARRAY_FREE(&c->prompt_hdata);
 
+	if (c->cwd != NULL)
+		xfree(c->cwd);
+
 	close(c->fd);
 	buffer_destroy(c->in);
 	buffer_destroy(c->out);
diff --git a/session.c b/session.c
index 9d1e1acf..bc8c6126 100644
--- a/session.c
+++ b/session.c
@@ -1,4 +1,4 @@
-/* $Id: session.c,v 1.48 2009-01-10 14:43:43 nicm Exp $ */
+/* $Id: session.c,v 1.49 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -109,7 +109,8 @@ session_find(const char *name)
 
 /* Create a new session. */
 struct session *
-session_create(const char *name, const char *cmd, u_int sx, u_int sy)
+session_create(
+    const char *name, const char *cmd, const char *cwd, u_int sx, u_int sy)
 {
 	struct session	*s;
 	u_int		 i;
@@ -141,7 +142,7 @@ session_create(const char *name, const char *cmd, u_int sx, u_int sy)
 		s->name = xstrdup(name);
 	else
 		xasprintf(&s->name, "%u", i);
-	if (session_new(s, NULL, cmd, -1) == NULL) {
+	if (session_new(s, NULL, cmd, cwd, -1) == NULL) {
 		session_destroy(s);
 		return (NULL);
 	}
@@ -192,7 +193,8 @@ session_index(struct session *s, u_int *i)
 
 /* Create a new window on a session. */
 struct winlink *
-session_new(struct session *s, const char *name, const char *cmd, int idx)
+session_new(struct session *s,
+    const char *name, const char *cmd, const char *cwd, int idx)
 {
 	struct window	*w;
 	const char	*env[] = { NULL /* TMUX= */, "TERM=screen", NULL };
@@ -205,7 +207,8 @@ session_new(struct session *s, const char *name, const char *cmd, int idx)
 	env[0] = buf;
 
 	hlimit = options_get_number(&s->options, "history-limit");
-	if ((w = window_create(name, cmd, env, s->sx, s->sy, hlimit)) == NULL)
+	w = window_create(name, cmd, cwd, env, s->sx, s->sy, hlimit);
+	if (w == NULL)
 		return (NULL);
 
 	return (session_attach(s, w, idx));
diff --git a/tmux.c b/tmux.c
index ada0bb4a..64d50743 100644
--- a/tmux.c
+++ b/tmux.c
@@ -1,4 +1,4 @@
-/* $Id: tmux.c,v 1.90 2009-01-10 19:35:40 nicm Exp $ */
+/* $Id: tmux.c,v 1.91 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -178,7 +178,7 @@ main(int argc, char **argv)
 	const char		*shell;
 	struct passwd		*pw;
 	char			*path, *cause, *home;
-	char			 rpath[MAXPATHLEN];
+	char			 rpath[MAXPATHLEN], cwd[MAXPATHLEN];
 	int	 		 n, opt, flags;
 
 	flags = 0;
@@ -305,6 +305,12 @@ main(int argc, char **argv)
 	    &global_options, "default-command", "exec %s", shell);
 	
 
+	if (getcwd(cwd, sizeof cwd) == NULL) {
+		log_warn("getcwd");
+		exit(1);
+	}
+	options_set_string(&global_options, "default-path", "%s", cwd);
+
 	if (argc == 0) {
 		cmd = xmalloc(sizeof *cmd);
   		cmd->entry = &cmd_new_session_entry;
diff --git a/tmux.h b/tmux.h
index d5541bfe..cfd4973b 100644
--- a/tmux.h
+++ b/tmux.h
@@ -1,4 +1,4 @@
-/* $Id: tmux.h,v 1.218 2009-01-10 19:35:40 nicm Exp $ */
+/* $Id: tmux.h,v 1.219 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -387,6 +387,8 @@ struct msg_identify_data {
 	char		tty[TTY_NAME_MAX];
 	int	        version;
 
+	char		cwd[MAXPATHLEN];
+
 #define IDENTIFY_UTF8 0x1
 #define IDENTIFY_256COLOURS 0x2
 #define IDENTIFY_HASDEFAULTS 0x4
@@ -591,6 +593,7 @@ struct window_mode {
 struct window {
 	char		*name;
 	char		*cmd;
+	char		*cwd;
 
 	int		 fd;
 	struct buffer	*in;
@@ -728,6 +731,7 @@ struct client {
 	struct buffer	*out;
 
 	char		*title;
+	char		*cwd;
 
 	struct tty 	 tty;
 	struct timeval	 status_timer;
@@ -866,7 +870,7 @@ struct set_option_entry {
 };
 extern const struct set_option_entry set_option_table[];
 extern const struct set_option_entry set_window_option_table[];
-#define NSETOPTION 17
+#define NSETOPTION 18
 #define NSETWINDOWOPTION 12
 
 /* Edit keys. */
@@ -1342,9 +1346,10 @@ struct winlink	*winlink_next(struct winlinks *, struct winlink *);
 struct winlink	*winlink_previous(struct winlinks *, struct winlink *);
 void		 winlink_stack_push(struct winlink_stack *, struct winlink *);
 void		 winlink_stack_remove(struct winlink_stack *, struct winlink *);
-struct window	*window_create(const char *,
+struct window	*window_create(const char *, const char *,
 		     const char *, const char **, u_int, u_int, u_int);
-int		 window_spawn(struct window *, const char *, const char **);
+int		 window_spawn(struct window *,
+		     const char *, const char *, const char **);
 void		 window_destroy(struct window *);
 int		 window_resize(struct window *, u_int, u_int);
 int		 window_set_mode(struct window *, const struct window_mode *);
@@ -1373,10 +1378,12 @@ void	 session_alert_cancel(struct session *, struct winlink *);
 int	 session_alert_has(struct session *, struct winlink *, int);
 int	 session_alert_has_window(struct session *, struct window *, int);
 struct session	*session_find(const char *);
-struct session	*session_create(const char *, const char *, u_int, u_int);
+struct session	*session_create(
+    		     const char *, const char *, const char *, u_int, u_int);
 void	 	 session_destroy(struct session *);
 int	 	 session_index(struct session *, u_int *);
-struct winlink	*session_new(struct session *, const char *, const char *, int);
+struct winlink	*session_new(struct session *, 
+    		     const char *, const char *, const char *, int);
 struct winlink	*session_attach(struct session *, struct window *, int);
 int		 session_detach(struct session *, struct winlink *);
 int		 session_has(struct session *, struct window *);
diff --git a/window.c b/window.c
index 48de0da9..8d4bd496 100644
--- a/window.c
+++ b/window.c
@@ -1,4 +1,4 @@
-/* $Id: window.c,v 1.53 2009-01-10 14:43:43 nicm Exp $ */
+/* $Id: window.c,v 1.54 2009-01-10 19:37:35 nicm Exp $ */
 
 /*
  * Copyright (c) 2007 Nicholas Marriott <nicm@users.sourceforge.net>
@@ -204,14 +204,15 @@ winlink_stack_remove(struct winlink_stack *stack, struct winlink *wl)
 }
 
 struct window *
-window_create(const char *name,
-    const char *cmd, const char **envp, u_int sx, u_int sy, u_int hlimit)
+window_create(const char *name, const char *cmd,
+    const char *cwd, const char **envp, u_int sx, u_int sy, u_int hlimit)
 {
 	struct window	*w;
 	char		*ptr, *copy;
 
 	w = xmalloc(sizeof *w);
 	w->cmd = NULL;
+	w->cwd = NULL;
 
 	w->fd = -1;
 	w->in = buffer_create(BUFSIZ);
@@ -252,7 +253,7 @@ window_create(const char *name,
 	ARRAY_ADD(&windows, w);
 	w->references = 0;
 
-	if (window_spawn(w, cmd, envp) != 0) {
+	if (window_spawn(w, cmd, cwd, envp) != 0) {
 		window_destroy(w);
 		return (NULL);
 	}
@@ -260,7 +261,8 @@ window_create(const char *name,
 }
 
 int
-window_spawn(struct window *w, const char *cmd, const char **envp)
+window_spawn(
+    struct window *w, const char *cmd, const char *cwd, const char **envp)
 {
 	struct winsize	 ws;
 	int		 mode;
@@ -268,11 +270,10 @@ window_spawn(struct window *w, const char *cmd, const char **envp)
 
 	if (w->fd != -1)
 		close(w->fd);
-	if (cmd != NULL) {
-		if (w->cmd != NULL)
-			xfree(w->cmd);
-		w->cmd = xstrdup(cmd);
-	}
+	if (w->cmd != NULL)
+		xfree(w->cmd);
+	w->cmd = xstrdup(cmd);
+	w->cwd = xstrdup(cwd);
 
 	memset(&ws, 0, sizeof ws);
 	ws.ws_col = screen_size_x(&w->base);
@@ -282,12 +283,14 @@ window_spawn(struct window *w, const char *cmd, const char **envp)
 	case -1:
 		return (1);
 	case 0:
+		if (chdir(cwd) != 0)
+			chdir("/");
 		for (envq = envp; *envq != NULL; envq++) {
 			if (putenv(*envq) != 0)
 				fatal("putenv failed");
 		}
 		sigreset();
-		log_debug("new child: cmd=%s; pid=%ld", w->cmd, (long) getpid());
+		log_debug("new child: cmd=%s pid=%ld", w->cmd, (long) getpid());
 		log_close();
 
 		execl(_PATH_BSHELL, "sh", "-c", w->cmd, (char *) NULL);
@@ -327,6 +330,8 @@ window_destroy(struct window *w)
 	buffer_destroy(w->in);
 	buffer_destroy(w->out);
 
+	if (w->cwd != NULL)
+		xfree(w->cwd);
 	if (w->cmd != NULL)
 		xfree(w->cmd);
 	xfree(w->name);